KARACHI, Jan 3: All roads on the Karachi Stock Exchange on Thursday led to Hub-Power as investors were not inclined to miss the bandwagon followed by strong rumours of an imminent interim dividend of 20 to 25 per cent.
“A record single-session volume of 183m shares in it may not be the millennium’s all-time record, but it certainly reinforced the perception that investors are not that miser and react bullishly to good corporate news or rumours,” leading stock analysts say.
The sudden advent of foreign fund buying in it lured everyone into its fold, lifting the KSE 100-share index from the early lows to finish with a smart rise of 19.24 points or 1.45 per cent at 1,349.98, although it failed to sustain the support level of 1,350.
The tally in Hubco was billed as the largest single-session volume in an individual share after the PTCL and some other mega issues, surpassing its previous record of 150m shares set on Aug 5, 1999.
However, the current bull-run reflected a judicious blend of both strong local and foreign buying, while the second-best turnover figure was the outcome of panic selling owing to standoff on the tariff issue with the Independent Power Producers (IPPs).
The market has been rife with strong rumours of an imminent interim dividend between 20 to 25 per cent and the panic buying by the foreign funds reinforced the perception that the rumours were based on some insider information, stock analysts at AHRA said. “Massive buying by a leading brokerage house reversed the trend.”
“After having utilized the full power generation capacity and strong financial fundamentals, Hubco has both the capacity and the resources to announce any amount of interim, and the current scramble for its low-priced shares has more than one reasons behind it,” stock analysts at the W.E. Financials said.
They said it was virtually the day of Hubco as all roads led to it as no one was inclined to miss the bandwagon at least for the near-term.
All other leading shares also showed good rallies on sympathetic buying and perception of continued bull-run until the end of Saarc meeting and the visit of the British prime minister on Jan 7.
Although plus signs again dominated the list, most of the gains were fractional and reflected the absence of sellers. Daewoo Hercules, Adamjee Insurance, Pakistan Gum Chemicals, Kohinoor Weaving, Tri-Pack Films and Sitara Chemicals were leading among the gainers, up by one rupee to Rs.2.
Losers were led by Shell Pakistan, which suffered fresh fall of Rs.3.60 on selling triggered by fears of fall in earning owing to lower oil prices, followed by Pakistan Refinery, Crescent Steel, which suffered fall ranging from Rs.1.25 to 1.40, while others fell fractionally under the lead of second-liners.
Turnover rose to 270m shares, a half of the all-time record of 525m shares as gainers held a fair lead over the losers at 82 to 33, out of 158 actives.
Hub-Power was massively traded, up Rs.1.15 at Rs.18.10 on 183.29m shares followed by PTCL, higher 35 paisa at Rs.15.15 on 55m shares, FFC-Jorden Fertilizer, firm by 30 paisa at Rs.4.20 on 10m shares, PSO, up 40 paisa at Rs.95.40 on 4m shares and ICI Pakistan, unchanged at Rs.38 also on 4m shares.
Other actives were led by Adamjee Insurance, up Rs.1.30 on 3.583m shares, Sui Northern, steady by 20 paisa on 2.614m shares, Fauji Fertilizer, higher 45 paisa on 2.374m shares, Engro Chemical, firm by 30 paisa on 2.127m shares an Nishat Mills, steady 10 paisa on 2m shares.
FUTURE CONTRACTS: Hubco also came in for strong speculative support on the forward counter and rose by Rs.1.17 at Rs.18.17 on about 8m shares, largest turnover so far in any of the speculative share.
PTCL followed it, higher 30 paisa at Rs.15.20 on 4m shares and FFC-Jordan higher 30 paisa at Rs.4.25 on 0.174m shares and PSO, firm by five paisa at Rs.95.95 on 0.100m shares. While other shares rose, ICI Pakistan was the only exception, off 30 paisa at Rs.36.70 on 52,500 shares.
DEFAULTER COMPANIES: Allied Motors again came in for active support and was marked up by 15 paisa at Rs.2.75 on 2,000 shares followed by Shahpur Textiles, higher 35 paisa at Rs.1.60 on 1,000 shares.
BOARD MEETINGS: National Asset Leasing Corporation on Jan 8, Bilal Fibre on Jan 9 and Cherat Cement on Jan 10.
